In response to The Wall Street Journal’s Sensationalism, regarding Lynn Tilton and Patriarch Partners, LLC:
1) Lynn Tilton’s Patriarch Partners ”took nearly $3 million out” of ailing ambulance operator TransCare Corp. in the year before bankruptcy
The Truth: The schedules referred to list “Patriarch Partners Agency, LLC” as having been paid $2.785 million. These are clearly interest payments paid to the Zohar Funds and other lenders and not to Patriarch.
2) A former TransCare chief financial officer (who asked to remain anonymous) “said during his tenure as CFO, he was required to pay loan interest and management fees to Patriarch ahead of vendors, payroll, taxes and health insurance premiums. “
The Truth: Transcare paid no fees to any Patriarch entity since 2011
3) “The company was using every spare dollar it had to pay its management fees and interest” to Patriarch, he told The Wall Street Journal.
The Truth: Transcare has not paid management fees to Patriarch since 2011
4) “Patriarch Partners served as loan agent for TransCare, as well as owner, responsible for collecting money the ambulance operator owed to the Zohar funds.”
The Truth: PPAS was the loan agent, and not the owner. They also collected money for other funds who were lenders.
5) A lawyer for the Zohar funds said the failure to provide for the businesses was Ms. Tilton’s. In a Delaware lawsuit, lawyers for the Zohar funds said when they attempted to talk to managers of the Patriarch-run businesses, they were rebuffed, on Ms. Tilton’s orders.
The Truth: This is just not true, they were not rebuffed. The companies want a confidentiality agreement signed. The Zohar Funds refuse.